By Bruno Federowski
SAO PAULO, Dec 16 Most Latin American currencies
slipped on Friday as concerns over higher U.S. interest rates
offset a sharper-than-expected rate hike by the Mexican central
The peso fell 0.5 percent, a day after the central
bank's aggressive 50-basis-point tightening boosted the currency
by 0.7 percent.
The bank has raised rates five times this year in a bid to
curb price pressures stemming from a weaker peso, which set
record lows in the wake of Donald Trump's victory last month in
the U.S. presidential election.
Despite the Mexican central bank's action, traders remained
concerned that higher U.S. rates over the coming months could
spark outflows from high-yielding, Latin American bonds.
The U.S. Federal Reserve this week increased the number of
rate hikes it expects for next year to three from two, following
Trump's promises of tax cuts and heavy spending.
The Brazilian real slipped 0.7 percent, edging back
toward 3.40 to the dollar for the first time in over a week.
The country's benchmark Bovespa stock index rose 0.7
percent, however, supported by the announcement of a stimulus
package aiming at reducing the debt burden of consumers and
companies amid a deep recession.
Brazil's biggest retailer, GPA SA, was among the
biggest gainers on the index, rising as much as 6 percent in
Key Latin American stock indexes and currencies at 1500 GMT:
Stock indexes daily % YTD %
MSCI Emerging Markets 857.99 -0.08 8.12
MSCI LatAm 2266.01 0.49 23.24
Brazil Bovespa 58758.00 0.62 35.54
Mexico IPC 45645.27 -0.49 6.21
Chile IPSA 4239.28 0.35 15.19
Chile IGPA 21173.04 0.3 16.65
Argentina MerVal 16720.54 -0.1 43.21
Colombia IGBC 10046.35 0.14 17.54
Venezuela IBC 30224.58 -0.95 107.18
Currencies daily % YTD %
Brazil real 3.3935 -0.68 16.31
Mexico peso 20.4330 -0.49 -15.68
Chile peso 670.1 -0.61 5.91
Colombia peso 2993.25 0.24 5.88
Peru sol 3.395 0.21 0.56
Argentina peso (interbank) 15.9350 0.19 -18.53
Argentina peso (parallel) 16.66 0.00 -14.35
(Reporting by Bruno Federowski; Editing by Dan Grebler)